Govt may cut interest rates of small savings schemes for July-Sept quarter

For some schemes the cut may be 30-50 bps; not all will be affected

The government may lower interest rates on small savings schemes for the July-September quarter, according to senior government sources. The cut may only be for some — and not all — small savings schemes, and could be as high as 30-50 basis points.

The last round of changes in small savings rates were for the January-March quarter. The rates for one-year, two-year, and three-year time deposits were aligned with each other. The rates for the April-June quarter remained unchanged.

“Reducing the cost of capital to boost investment has been a stated aim of this administration. A part of that was